At 25k purchase price I'm guessing (again...not knowing anything else about the property..) this is not a simple cosmetic flip.  

The answer to your question is not as simple as a dollar amount.

Let them know what your expectations are. also let them know how you will handle things like rent increases and late charges.

You can also focus on NC, GA, TX, AZ, NV, VA, MO to just name a few other Non-judicial states.Don't be scared of judicial states because often times, values will increase on your assets while you are going through the foreclosure process and you'll be in a better deal by the end.  

It's quick and simple profit.

Home prices increased the most in Oregon (11.7 percent), Washington (10.3 percent), Colorado (10.2 percent), Florida (10.0 percent) and Nevada (9.6 percent).

LOLI don't know much about market cycles (I need to learn) but I feel that something like RE can't keep increasing in prices at current rates while the rest of the economy is going at a slower pace.

The NOI will increase due to increased rents.

Another advantage of higher priced homes, is the power of leverage and the tenant paying off a higher amount of principal payments each month which increases your equity at much higher rates than for cheap homes

Simple, tell the tenant he or she needs to sign a new written lease.